Intel Corporation

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
BMO Capital Markets	Ambrish Srivastava	ambrish.srivastava@bmo.com
RBC Capital Markets	Amit Daryanani	amit.daryanani@rbccm.com
Aegis / HIRG Technology	Ashok Kumar	akumar@aegiscap.com
Wedbush Securities	Betsy Van Hees	betsy.vanhees@wedbush.com
Evercore ISI	C.J. Muse	cj.muse@evercoreisi.com
B Riley & Co	Craig A. Ellis	cellis@brileyco.com
Wells Fargo Securities	David Wong	david.m.wong@wellsfargo.com
CRT Capital Group	Douglas Freedman	dfreedman@sterneageecrt.com
Raymond James	Hans Mosesmann	hans.mosesmann@raymondjames.com
Credit Suisse	John Pitzer	john.pitzer@credit-suisse.com
Stifel Nicolaus	Kevin E Cassidy	kcassidy@stifel.com
Roth Capital Partners	Krishna Shankar	kshankar@roth.com
Jefferies	Mark Lipacis	mlipacis@jefferies.com
Canaccord Genuity	Matthew D. Ramsay	mramsay@canaccordgenuity.com
Pacific Crest Securities-KBCM	Michael McConnell	mmcconnell@pacific-crest.com
Brean Capital, LLC	Mike Burton	mburton@breancapital.com
Oppenheimer	Rick Schafer	rick.schafer@opco.com
Nomura Research	Romit Shah	romit.shah@nomura.com
Deutsche Bank Research	Ross Seymore	ross.seymore@db.com
Bernstein Research	Stacy A. Rasgon	stacy.rasgon@bernstein.com
Topeka Capital Markets	Suji De Silva	sd@topekacapitalmarkets.com
Northland Securities	Thomas Sepenzis	tsepenzis@northlandcapitalmarkets.com
Cowen & Company	Timothy Arcuri	timothy.arcuri@cowen.com
Mizuho Securities USA	Vijay Rakesh	vijay.rakesh@us.mizuho-sc.com
SunTrust Robinson Humphrey	William Stein	william.stein@suntrust.com
Needham	Y. Edwin Mok	emok@needhamco.com
Daiwa Securities Co. Ltd.	Yoko Yamada	yoko.yamada@us.daiwacm.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	9,665	9,628	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	11,691	12,183	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	66	36	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	87,398	93,025	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	11.06%	10.35%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	20,172	13,417	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	208.72%	139.35%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	7.74%	15.80%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	9.18%	9.22%
Enterprise value	EV_Market	161,369	179,474	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	168,217	175,107
Long-Run Growth	g = IR x ROIC	23.08%	14.42%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	26.86%	24.94%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	36.94%	34.46%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	2.92	3.02	3.83%	21.66%	3.95%	19.23%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	6.84	7.94	3.83%	21.66%	3.95%	19.23%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	16.70	18.64	3.83%	21.66%	3.95%	19.23%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	13.80	14.73	3.83%	21.66%	3.95%	19.23%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	10.85	12.12	3.83%	21.66%	3.95%	19.23%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	1.85	1.93	3.83%	21.66%	3.95%	19.23%